Pakistan's President Pervez Musharraf has said the chances of war with India over the disputed territory of Kashmir are "minimal".

The threat of war in the last four or five days has diminished

President Musharraf

His comments come amid growing signs that both sides are stepping back from a major conflict over the issue.

However, shelling across border continued on Sunday.

And Pakistan has demanded the release of a political separatist arrested in Indian-administered Kashmir.

The man, Syed Ali Shah Geelani, has been charged with receiving money from Pakistan's intelligence services to fund militant groups.

'Threat diminished'

President Musharraf made his upbeat comments in an interview with Malaysia's New Sunday Times newspaper.

Rising tension:

1 October 2001: 38 killed in attack on the Kashmir assembly in Srinagar13 December 2001:14 killed in attack on the Indian parliament building in Delhi 14 May 2002:More than 30 killed in attack on an Indian army camp in Kashmir
21 May 2002: Moderate Kashmiri politician Abdul Ghani Lone shot dead